CCI Slaps Rs 936.44 cr Fine on Google Over Play Store Policies, Company Says 'Committed to Users'

New Delhi: Anti-trust regulator CCI on Tuesday imposed a fine of Rs 936 crore on Google for abusing its dominant position with respect to its Play Store policies. A day later, the US-based tech giant said it remains committed to users and developers and is reviewing the decision to evaluate the next steps.

In its second ruling against Google in less than a week, the Competition Commission of India (CCI) slapped a penalty of Rs 936.44 crore on the internet major for abusing its dominant position with respect to its Play Store policies.

The regulator also directed the company to cease and desist from unfair business practices as well as carry out various measures to address the anti-competitive issues within a defined timeline, according to an order.

Indian developers have benefited from the technology, security, consumer protections, choice and flexibility that Android and Google Play provide, Google said.
"And, by keeping costs low, our model has powered India's digital transformation and expanded access for hundreds of millions of Indians," a Google spokesperson said. The company also said it remains committed to users and developers and is "reviewing the decision to evaluate the next steps."

This is the second major CCI ruling against Google in less than a week. On October 20, the watchdog imposed a penalty of Rs 1,337.76 crore on the company for abusing its dominant position in multiple markets in relation to Android mobile devices and ordered the internet major to cease and desist from various unfair business practices. 

In a release on Tuesday, the Competition Commission of India (Commission) said it has imposed a penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies. The penalty amount translates to 7 per cent of the company's average relevant turnover.

Google's Play Store constitutes the main distribution channel for app developers in the Android mobile ecosystem, which allows its owners to capitalise on the apps brought to market.

The regulator noted that making access to the Play Store for app developers dependent on mandatory usage of GPBS (Google Play's Billing System) for paid apps and in-app purchases constitutes an imposition of an unfair condition on app developers.

Apart from the penalty, CCI said Google should not restrict app developers from using any third-party billing/ payment processing services for purchasing apps.
There was no immediate comment from Google on the latest CCI order. On October 21, the internet major said it will review the order with respect to the Android devices matter.

Through the two orders passed in less than a week, the watchdog has imposed "provisional" penalties" totalling Rs 2,274.2 crore on Google. The latest ruling related to Google Play Store came on the last day of the tenure of CCI Chairperson Ashok Kumar Gupta.

In February 2018, the regulator imposed a fine of Rs 136 crore on Google for unfair business practices in the Indian market for the online search.
Currently, the regulator is probing Google in cases of alleged anti-competitive practices by Google with respect to news content and smart TV.

(With PTI inputs)